Published on 11/28/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.22 million head start annual income opportunity notes tied to stocks
By Angela McDaniels
Tacoma, Wash., Nov. 28 - HSBC USA Inc. priced $1.22 million of head start annual income opportunity notes with auto cap due Nov. 28, 2018 linked to a basket of 10 common stocks, according to an FWP filing with the Securities and Exchange Commission.
The basket includes Altria Group, Inc., Amazon.com, Inc., Amgen Inc., Archer-Daniels-Midland Co., AT&T Inc., Barrick Gold Corp., General Mills, Inc., Halliburton Co., Intel Corp. and Mattel, Inc.
Interest is payable annually and equals the average of the performances of the basket stocks, subject to a minimum interest rate of 0%.
A stock's performance will be set at 10% if its return is greater than or equal to negative 10%. If a stock's return is less than negative 10%, its performance will be the greater of its return and negative 20%.
The payout at maturity will be par.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Head start annual income opportunity notes with auto cap
|
| Underlying stocks: | Altria Group, Inc., Amazon.com, Inc., Amgen Inc., Archer-Daniels-Midland Co., AT&T Inc., Barrick Gold Corp., General Mills, Inc., Halliburton Co., Intel Corp. and Mattel, Inc.
|
| Amount: | $1,221,000
|
| Maturity: | Nov. 28, 2018
|
| Coupon: | Average of the performances of the basket stocks, subject to a minimum interest rate of 0%; payable annually
|
| Stock performance: | If stock's return is negative 10% or greater, 10%; otherwise, greater of stock return and negative 20%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4.95%
|
| Cusip: | 4042K1RF2
|
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